Bitcoin Network Activity plunges to annual lows as BTC struggles under $100,000: Encryption

The Bitcoin Network seems to be a ghost town, and its activity has fallen to its lowest level in a year. The market analysis platform Bitcoin Network Activity Index has earned around 3,760 CryptoQuant, the lowest since February 2024, with activity on major blockchains since its record high in November 2024. It shows a 15% drop.

According to weekly crypto reports, the index measures the growth of key Bitcoin metrics, such as block size, active addresses, and number of transactions. This means that the decline in Bitcoin activity covers almost every area of ​​the network. In particular, the index is below the 365-day moving average for the first time since July 2021 when China banned Bitcoin mining.

Bitcoin network activity decreases

Looking at various parts of the Bitcoin network, activity has declined sharply. The number of active addresses and transactions has decreased by two orders of magnitude. The daily total of transactions fell 53% from a history-high 734,000 in September 2024 to the current 346,000 at 346,000. This is the lowest level since March 2024.

Similarly, the number of active addresses in Bitcoin fell 20% from 1.14 million in November 2023 to 942,000 today, the lowest level since October 2024.

Bitcoin Miners are also feeling heated as their total transaction fees have dropped due to low network activity. Daily trading fees were $593,000, with $4.7 million at the top of local rates in late October 2024. Transaction fees currently account for 1.8% of Bitcoin Miners’ total revenue, indicating that this cohort of market participants is less profitable.

BTC appears to be overrated

Furthermore, low network activity is evident even in almost empty Bitcoin members. The number of transactions waiting to be included in the block has now fallen by 99% from 287,000 in December 2024 to 3,000. According to Cryptoquant, Mempool was not as empty in the last bear market in March 2022.

In addition to almost empty memory, the Bitcoin network has been seen collapse in the use of the Runes protocol. Runes was created for mint tokens for tokens on the Bitcoin network, and when the protocol was launched in April 2024, the OP return code was spiked to 802,000 for one day. However, that figure has now dropped to 10,000, indicating that there are far fewer OP return codes used in Bitcoin transactions.

Meanwhile, from a network activity perspective, Bitcoin (BTC) appears to be overvalued at $97,000 at its current price. The red and blue Metcalf valuation band indicates that the fair value of the asset is between $48,000 and $95,000.